One Difficulty in Searching for Variables That Might Predict Consistency

question 26

Multiple Choice

One difficulty in searching for variables that might predict consistency of behavior is that

• A) it is hard for researchers to think of variables that would predict differences in consistency.
• B) such research is too time-consuming to conduct.
• C) only one variable seems to predict consistency.
• D) the effects of such variables are subtle and are sometimes difficult to detect.

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Definitions:

Variance

The difference between planned or expected outcomes and the actual outcomes in finance and accounting.

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs accurately.

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.